Hinterland Metals Inc. said May 15 that it secured an option from Alto Ventures Ltd. to earn up to a 75% interest in the latter's Destiny gold project in Quebec.
Under the terms, Hinterland may acquire an initial 50% stake in the property by paying C$150,000 in cash, issuing up to 4 million shares and completing C$8 million of exploration expenditures in stages over a three-year period.
The company can then earn an additional 25% interest by paying C$200,000, issuing up to 4 million shares and incurring C$8 million more in expenditures over two years. A joint venture will be formed upon Hinterland exercising the second option.
If Hinterland opts not to proceed with the second option, the joint venture will be on a 50/50 basis.
The deal is subject to due diligence, regulatory approvals and Hinterland raising at least C$750,000 in a private placement by June 30. The company is also planning to consolidate its shares on a 1-for-4 basis to improve liquidity and attract funding.
According to the statement, Hinterland plans to kick off initial exploration activities on the property, including geological modeling and a 5,000-meter drill program, upon completion of the financing.
The Destiny project hosts the DAC deposit, which comprises higher grade gold-bearing quartz veins occurring within five parallel, altered shear zones.
